Fingal Affordable Housing Forcing Me To Keep Mortgage Protection With Their Provider

D

dereklawson

Guest
Hi,

I have an affordable house with Fingal County Council and I wish to move my mortgage protection to another provider. I have checked on the Internet to see how much other institutions are charging for similar cover. I'm being charged over twice the amount by Fingal or whoever provides their mortgage protection.

Does anyone know the reason why I cannot move my mortgage protection to a different provider i.e. move it from the company that I have currently signed up with via my affordable housing application.

If I cannot move my mortgage protection to another provider can someone explain why I can get my house insurance with whatever provider I wish and not my mortgage protection?

Thanks,

Derek Lawson

p.s. I've been in touch with the financial regulator and they said it's legal what Fingal are doing.

 
hi,

well i actually queried the same as you. I checked with IFSRA also and they dont look at council / Corporation agreements so thats a no go.
On a normal mtge you can acquire protection with a different lender if you wish so I do not know why Fingal is different but would love to know. Fingal told me I have to get it with them
 
According to [broken link removed] (and possibly some of the other links ):
Do I need mortgage-protection insurance?

Yes. This is a special type of life assurance taken out for the term of the mortgage to make sure the mortgage is paid off if you die.

Mortgage-protection insurance from your Local Authoriy

 If your mortgage is with the Local Authority, you must take out a mortgage-protection insurance policy with them and the cost will be added to your monthly mortgage repayments.

Mortgage-protection insurance from your bank or Building Society

 If you get a mortgage with a Bank or Building Society, you will need to take out mortgage-protection insurance. Discuss your options for mortgage-protection insurance with them.
Click to expand...
Doesn't answer the question of "why?" though...
 
Hi

I am in the process of buying my aprtment. Now maybe I am wrong but I think Fingal CC are charging me EUR 94 per month for Mortgage Protection. I checked on Labrokers.com and i got quoted EU 10 per month or EUR 100 for the entire year!
Or am I totally mistaken in thinking Fingal could be charging EUR 94 per month. If they are it is a total rip off.
Anyone any opinions.............
 
mlouisa said:
Now maybe I am wrong but I think Fingal CC are charging me EUR 94 per month for Mortgage Protection.

...

Or am I totally mistaken in thinking Fingal could be charging EUR 94 per month.
Click to expand...
Surely the terms & conditions of the loan and mortgage protection life assurance clarify if this is the monthly or annual premium?
Anyone any opinions.............
Click to expand...
Can you not get a mortgage from a regular lender and thus get mortgage protection life assurance elsewhere rather than getting both from the local authority?
 
ClubMan said:
Surely the terms & conditions of the loan and mortgage protection life assurance clarify if this is the monthly or annual premium?
Can you not get a mortgage from a regular lender and thus get mortgage protection life assurance elsewhere rather than getting both from the local authority?
Click to expand...


Fingal are charging EUR 94 per month. Their condition is you must get mort. protection from them. Seems very unfair when they are the most expensive on the market tho
 
Can you not get a loan and thus mortgage protection life assurance from some other lender?
 
unfortunately you can't get a loan from another lender, can't pick any other mortgage protection provider and just remember (i bought my house over 4 years ago) that you don't ever have the option to remortgage
 
The link that I posted earlier suggests that some local authorities allow you to borrow from lenders other than themselves.
 
Hi there Rex

Fingal coco do allow you to re-mortgage. I called them recently about this. It does mean you have to pay them back the clawback (which i presume you factor into new mortgage value from new provider) but they told me that remortgaging has been done by affordable house owners... your monthly payments will probably increase I'm sure, but then the place is 100% yours to do as you please i.e. rent out etc.. This is what the lady in Fingal (mortgage section) said only last wk... mind you I didn't get her name or the info. in writing:(

Good luck

S
 
hi scatriona,
yes you're right my mistake they do allow you to remortgage but like you said you have to pay the clawback which i just couldn't afford to do especially as i don't know if i will sell in the next few years it would be pointless. regarding paying back the clawback and being able to rent out, quite a few properties where i live have never been lived in by the occupant and just bought to rent out which again is another issue.
 
"quite a few properties where i live have never been lived in by the occupant "

Do you mean affordable houses? that's a bit cheeky! but I suppose it does happen... the 'landlords' obviously don't let their tennants claim rent relief or whatever as surely the Revenue could easily identify that they shouldn't be rented out like that (except for rent-a-room scheme) which I believe is permitted...

S
 
hi scatriona,
believe me it's widespread and the councils are aware of it and apparently turn a blind eye. It's just so unfair when we can't remortgage without paying clawback, still could be an election issue?
 
If you know for a fact that this is happening then have you considered reporting it to the relevant authorities (e.g. Revenue if the local authority is not interested)?

Note that landlords don't have to "allow" their tenants to claim the rental tax credit and the tenants can just go ahead and do it anyway even if the landlord doesn't play ball.
 
I am currently querying my mortgage protection with Fingal CC. They will charge me EUR 71.26 per month. www.labrokers.ie will charge EUR 100 per year!! FInagl CC say they include disability beneit. Brokers I have spoke to say not many gets this.The way things are with rising int rates people are going for the cheaper package. I brought this to the attention of my local TD he will submit the unfairness of the issue in a parilamentary question next week. Also get a load of this below: the mort protection rules set in 1986!!! 21 years ago, how much competition was there for mort protection then. Its so unfair......... and overall not in one bit affordable

^^​
Housing Grants. ^^​


556. Mr. Hayes asked the Minister for the Environment, Heritage and Local Government if he will address the issue of mortgage protection insurance for persons who are taking out loans from the county council and who are not allowed the freedom to acquire their own insurance independently and are being forced to pay a much higher rate to obtain it from their local authority; and if he will make a statement on the matter. [17461/04]

Minister of State at the Department of the Environment, Heritage and Local Government (Mr. N. Ahern): The local authorities' 1986 mortgage protection scheme has applied, subject to the terms of the scheme, to all house purchase loans approved by local authorities on or after 1 July 1986. The terms of the cover under the scheme was negotiated by a sub-committee of the County and City Managers' Association, the Housing Finance Agency and a representative of my Department. These terms are renegotiated periodically by the committee.
The cost of the scheme is met by way of an additional charge, currently 0.598%, to the rate of interest charged on individual loans. One of the conditions of the scheme, which is a group policy, is that it is obligatory for all local authority borrowers who meet the eligibility criteria to join the scheme. Altering this condition would have a negative impact on the scheme and increase the cost for all existing borrowers. Borrowers who have existing loans with local authorities have the option of redeeming these loans and refinancing in the private sector.
 
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